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How Technology Is Revolutionizing Supply Chain Finance

Technology Is Revolutionizing Supply Chain Finance

by Kevin O’Connor

Digitization is leaving its footprint on just about every industry across the globe at this point. As the global finance market changes with influences such as growing globalization and evolving customer demands, companies are turning to modern technology for continued success and competitiveness. Leaders are using technology not just to survive the turbulent times, but actually thrive.

Digital transformation in supply chain management has become critical in facilitating organizational flexibility and process automation, and accelerated innovation. Below is a breakdown of how technology has contributed to the supply chain finance (SCF) revolution. 

Increased Automation through Artificial Intelligence

Advanced global trade platforms are using generative AI to completely change the way we do business. AI automates repetitive tasks such as data entry, processing payments and managing inventory. It also powers real-time insights through data analysis. AI can take large amounts of data and analyze it to identify trends and patterns. This is particularly advantageous for working capital programs, which are complex and don’t always offer real-time data and insights. Data is the backbone of powerful business intelligence. 

Removing manual work, whether minute tasks or valuable analysis, saves companies time to focus on higher-level projects.

Greater Transparency

A lack of end-to-end visibility has been a pain point for supply chain financing, as it leads to increased risk. Today’s platforms manage the entire life cycle of the transaction with automated technology to offer transparency in a variety of ways. Trade software replaces Excel sheets and PDFs with digital dashboards, offering real-time access to data across all programs. Corporates and their banking partners can track the status of their programs, identify potential risks and make informed decisions quickly. In addition to dashboards, global trade software now offers comprehensive reporting with information such as transaction details, upcoming and overdue repayments, limits and utilization, and exposure. Reporting provides clear, accurate and timely information to corporates and investors. 

This transparency fosters trust and collaboration among all parties involved.

Streamlined Invoicing

The traditional invoicing process consisted of numerous spreadsheets, excessive email tracking and a long paper trail. Advanced technology streamlines every aspect of the process by collecting all of this disparate data into a single digital platform and accelerating transaction processing times. 

Better Collaboration

Digital transformation in global trade has given birth to platforms that bring all stakeholders together, enhancing communication and transparency. All parties can access data in real-time and track the success of their programs. This synergy ultimately optimizes capital flow and yields more efficiency throughout the process. 

Better communication and collaboration drive better customer engagement as well. Giving customers more visibility and control over their programs builds trust.

Enhanced Decision-making

By integrating modern technology into supply chain management, businesses are able to make faster and more informed decisions. They can improve operational efficiency through predictive analytics from real-time data. By leaning on reliable data flows, companies can optimize the management of their SCF programs, improving their agility and responsiveness.

Staying Ahead of the Curve with LiquidX

Businesses that have been behind in their transformation are now finding it difficult to implement changes. Common roadblocks include fragmented processes, resistance to change, isolated functions and data quality concerns. Companies who sit in this state will suffer even more in the very near future if they don’t embrace the movement. According to Gartner, bringing digital transformation into the supply chain can lead to a 20% increase in revenue and a 50% reduction in process costs.

LiquidX has always stayed ahead of the game, offering innovative and industry-leading global trade finance solutions. LiquidX transforms working capital by providing one centralized, digital platform for all parties – buyers, suppliers and financiers. Our platform offers real-time visibility into transactions, payment schedules and risk assessments, enabling all involved to make informed decisions and optimize working capital.

Our digitization platform seamlessly connects into your ERP and digitizes every document and invoice, eliminating the need for manual processes driven by spreadsheets, paper and phone calls that slow down the entire investment process. To learn more about our software and request a demo, click here.